I Got My First Pay Check, What Do I Do With It? — How “The Richest Man in Babylon” Guided Me in Managing My Money by Jason Ascan
Receiving my first salary was such an exciting feeling for me. Prior to having a job, I had to save money for a few months so that I’d be able to buy nice things for myself. Expectedly, I was also able to buy those things with the same amount with the money I received from my first pay check! A lot of first-time employees, like me, see their first pay slip as the largest sum of money they ever got their hands on. It gave us confidence.
But as Spiderman’s Uncle Ben said, “With great power comes great responsibility.” Having more money to spend eventually leads to more responsibilities like bills and expenses.
Don’t you ever wish you won the lottery each time you’re unable to afford something that you need, if not want? But given the chances, we have a higher probability of being struck by lightning over hitting the jackpot.
Fortunately, practicing financial responsibility will surely help anyone manage their money. Don’t worry, you can still buy drinks at Starbucks or travel overseas even when doing this. Financial responsibility basically involves the proper management of your money. But how do we get there? This is where knowing how to handle your money comes in, commonly termed as financial literacy.
As I searched the internet and read various articles to help me manage my money efficiently, I came across this recommendation (several times) from people who are dedicated to managing and maximizing their finances — start by reading the book “The Richest Man in Babylon.”
This classic book written by George Clason was set during the ancient civilization of Babylon, once known as the most successful and richest kingdom on earth. It is also known for being the birth place of modern finance — trading, exchange of goods, borrowing and lending. Even slaves were allowed to score some money on their own in order to buy their own freedom.
This ancient city inspired Clason to write finance and wealth parables set in this place and time. The book mostly focused on Arkad, the richest man in Babylon, who shared his experience and wisdom to everyone who wished to be like him.
In a series of short stories, Clason laid out several rules for spending and saving your money wisely. Here are some of my personal favorites:
“Start thy purse by fattening”
In this book, it was imperative to save a portion, specifically a tenth of what you earn. No matter how small or huge your salary is, you should save at least 10 percent and build it up as a fund for unforeseen events that are unpredictable and undesirable. This is what we call emergency fund.
“Control thy expenditures”
Spend within your means. Limit buying expensive drinks from Starbucks and the like or booking numerous flights, even if those are just piso fares. It is important to practice delayed gratification, which is commonly practiced by well-off individuals.
“Make thy gold multiply”
After saving enough money for your emergency fund, you can further grow your finances by investing. There are several ways to invest your money — stocks, real estate, etc.
There were several other rules mentioned in the book, but these three are the most insightful ones for me. Of course, these rules are not the only means to achieve financial independence — as much as this book is just one of many that serves as a guide and provides a path towards achieving it.
For career starters like myself, I highly recommend that you read “The Richest Man in Babylon.” After all, the best thing you can invest in is yourself.
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About the author:
Perpetually curious, Jason always tries to learn something new every day. He also enjoys making people laugh with his sense of humor; constantly practicing it on his dog. He is also an enthusiast of the Japanese culture and spends a few minutes a day in learning their language.
